Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Kentucky Higher Education Student Loan Corporation (the “Corporation”) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this Schedule differ from amounts presented in, or used in the preparation, of the combined financial statements.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Corporation has elected not to use the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Schedule includes loans outstanding at the beginning of the year of $468,556,086 for which the federal government imposes continuing compliance requirements related to the Federal Family Education Loan (“FFEL”) program. In addition, the Schedule includes $6,779,626 of new loans purchased, and $6,678,679 for interest subsidy and special allowance earned by the Corporation. These amounts are considered federal awards expended for the year ending June 30, 2025. The balance of FFEL loans outstanding at June 30, 2025, is $412,209,343.